Business rates rises in England and Wales will be capped at 2% in 2014 the Chancellor George Osborne has announced today.
In the Autumn Statement Osborne revealed that rate rises will be limited to 2% next year instead of being linked to September retail prices index measure of inflation, which is set at 3.2%. He also said the reform of business rates is on the agenda for 2017.
The cap will provide welcome relief to retailers who have blamed the high cost of business rates for restricting investment and new job creation.
“Business rates impose a heavy burden on businesses of all sizes and we will help ease that burden,” said Osborne. “We are backing British businesses all the way.”
A scheme that offers rate relief to small businesses will also be extended until April 2015. Furthermore the Chancellor said that businesses will be allowed to pay their rates in 12 monthly instalments.
For next two years small shops will additionally get a discount of £1000 in business rates.